Westmark Credit Union
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Secrets to Success for Prospective House Flippers

House flipping can be lucrative, but it isn’t so for everyone. Without a solid, cautious plan for buying and flipping an investment property, you could easily end up losing money. The loans you get for your investment home have a significant impact on your ability to make a profit, so working with a credit union to ensure you get the best interest rates makes sense. These other secrets that have helped other house flippers make a profit will also help.

Balance Price and Location

A good investment property for flipping is available at a good price in a desirable location. That means that buying low is important. You don’t want to buy a property at current market value and then assume that the market will drive the price up enough for you to make a profit. Project your potential sale price plus your expenses for doing any necessary repairs and renovations, and work backwards from there to determine the maximum amount you can afford to invest up-front. However, you can’t simply look for a price tag. A cheap home is an unpopular area will not be profitable for you. The right property is in your budget in a good location.

Think Like an Investor and Not a Homeowner

It’s tempting to put the things you would want in your own home into an investment property, but personalizing the property in this way will diminish your pool of buyers and drive up your renovation costs. Keep your property as neutral as possible, so that buyers who enter it see a blank canvas that they can make their own rather than something that specifically reflects your tastes.

Understand Your Loan Options

Investment properties can’t be purchased with traditional mortgage loans. The interest rate on loans for homes that are to be flipped is typically higher than a mortgage. Review your options with your credit union as you build your business plan, so that you can account accurately for the costs.

Westmark Credit Union can guide you through the process of finding financing and ensuring that your flipping project fits into your financial plan. For financial advice in Idaho, call (208) 523-1071.

Categories: house flippers


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